Financial highlights for the quarter include:
Net interest margin increased to 2.96% compared to 2.81% for the fourth quarter of 2025 and 2.62% for the first quarter of 2025. The rising trend continues as the cost of funds is declining at a faster pace than earning asset yields. Net interest income rose $0.5 million compared to the same quarter of 2025, primarily due to the improved net interest margin.
The Banking Division's income for the quarter increased by $0.2 million compared to the same period in 2025, excluding the provision for credit losses. The increase was due to the $0.5 million increase in net interest income compared to the same quarter last year, as CIBM Bank's net interest margin grew to 3.03% compared to 2.67% over those same time periods. The Mortgage Division earned income of $0.1 million in the first quarter of 2026, due to cost management, refinance activity at the beginning of the quarter, and improved margins.
The allowance for credit losses to loans rose from 1.27% on December 31, 2025, to 1.30% on March 31, 2026, primarily due to additional provisions for individually assessed loans and qualitative assessment adjustments, which were partially offset by a net recovery in loans during the first quarter. Non-performing assets to total assets was 1.04% and non-accrual loans to loans was 1.30% on March 31, 2026, compared to 1.04% and 1.31%, respectively, on December 31, 2025.
Loan balances increased by $3 million and deposits by $17 million during the first quarter of 2026. The deposit growth replaced a reduction in total borrowings at CIBM Bank.
Mr. J. Brian Chaffin, CIB Marine's President and CEO, commented, "The improvement to our net interest margin continues, with CIBM Bank reporting at 3.03%. We are pleased with the progress we are making and look to improve this trend. Key drivers include growth in our loan portfolio, particularly within our commercial segments, continued development of deposit relationships, and ongoing asset and liability repricing activities.
Our cost controls remain effective. Combined with growing revenues they have improved our outlook for higher earnings. At the same time, credit loss provisions increased in the first quarter compared to the same period last year. We continue to closely monitor credit performance and broader economic conditions, including the potential impact of the conflict in the Middle East."
Turning to the Company's common stock repurchase plan, he added, "First quarter 2026 purchases totaled $1.1 million. Since February 2025, we have spent $2.3 million of the $2.5 million currently authorized under the plan through a combination of open market and private transactions, acquiring 64,100 shares of CIBH stock at an average price of $35.99 per share.
Based on tangible book value, the estimated return on these repurchases is approximately 60%. In addition, from the day prior to the commencement of the purchase program in February 2025 through March 31, 2026, CIBH stock price reported on OTCQX increased by 30%, compared to a 1% increase in the KBW Nasdaq Regional Banking Total Return Index (KRXTR) over the same period. While CIBH stock has outperformed the index over the past 12 months, as of the date of this release it continues to trade below the March 31, 2026, tangible book value per share of $61.09."
Finally, looking ahead to the Company's upcoming annual meeting, he concluded, "We look forward to sharing updates on our operating performance, strategic priorities, and capital plans at the Annual Shareholder Meeting on Thursday, April 30, 2026. Additional details regarding the virtual meeting, along with the related meeting materials, are available on our website."
CIB Marine Bancshares, Inc. is the holding company for CIBM Bank, which operates nine banking offices in Illinois, Wisconsin, and Indiana, and has mortgage loan officers and/or offices in six states. More information on the Company is available at www.cibmarine.com, including recent shareholder letters, links to regulatory financial reports, and audited financial statements.
FORWARD-LOOKING STATEMENTSCIB Marine has made statements in this release that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. CIB Marine intends these forward-looking statements to be subject to the safe harbor created thereby and is including this statement to avail itself of the safe harbor. Forward-looking statements are identified generally by statements containing words and phrases such as "may," "project," "are confident," "should be," "intend," "predict," "believe," "plan," "expect," "estimate," "anticipate" and similar expressions. These forward-looking statements reflect CIB Marine's current views with respect to future events and financial performance that are subject to many uncertainties and factors relating to CIB Marine's operations and the business environment, which could change at any time.There are inherent difficulties in predicting factors that may affect the accuracy of forward-looking statements. Stockholders should note that many factors, some of which are discussed elsewhere in this Earnings Release and in the documents that are incorporated by reference, could affect the future financial results of CIB Marine and could cause those results to differ materially from those expressed in forward-looking statements contained or incorporated by reference in this document. These factors, many of which are beyond CIB Marine's control, include but are not limited to: • operating, legal, execution, credit, market, security (including cyber), and regulatory risks; • economic, political, and competitive forces affecting CIB Marine's banking business; • the impact on net interest income and securities values from changes in monetary policy and general economic and political conditions; and • the risk that CIB Marine's analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made. CIB Marine undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to significant risks and uncertainties and CIB Marine's actual results may differ materially from the results discussed in forward-looking statements.
CIB MARINE BANCSHARES, INC.
Selected Unaudited Consolidated Financial Data
At or for the
Quarters Ended
3 Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
March 31,
March 31,
2026
2025
2025
2025
2025
2026
2025
(Dollars in thousands, except share and per share data)
Selected Statement of Operations Data:
Interest and dividend income
$
10,586
$
10,881
$
10,780
$
11,017
$
10,941
$
10,586
$
10,941
Interest expense
4,760
5,208
5,196
5,541
5,652
4,760
5,652
Net interest income
5,826
5,673
5,584
5,476
5,289
5,826
5,289
Provision for (reversal of) credit losses
268
1,174
(90
)
9
42
268
42
Net interest income after provision for (reversal of) credit losses
5,558
4,499
5,674
5,467
5,247
5,558
5,247
Noninterest income (1)
1,178
1,292
1,908
1,765
1,552
1,178
1,552
Noninterest expense
5,969
6,223
6,375
6,311
6,373
5,969
6,373
Income (loss) before income taxes
767
(432
)
1,207
921
426
767
426
Income tax expense (benefit)
181
(115
)
299
253
105
181
105
Net income (loss)
$
586
$
(317
)
$
908
$
668
$
321
$
586
$
321
Common Share Data:
Basic net income (loss) per share
$
0.45
$
(0.24
)
$
0.67
$
0.49
$
0.24
$
0.45
$
0.24
Diluted net income (loss) per share
0.43
(0.24
)
0.65
0.48
0.23
0.43
0.23
Dividend
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Tangible book value per share (2)
61.09
60.95
60.72
59.55
58.25
61.09
58.25
Book value per share (2)
61.13
61.00
60.77
59.59
58.30
61.13
58.30
Weighted average shares outstanding, basic
1,310,842
1,334,388
1,350,097
1,354,477
1,353,859
1,310,842
1,353,859
Weighted average shares outstanding, diluted
1,349,513
1,379,094
1,396,512
1,402,229
1,401,138
1,349,513
1,401,138
Financial Condition Data:
Total assets
$
832,790
$
833,304
$
836,760
$
838,441
$
852,018
$
832,790
$
852,018
Loans
669,543
666,199
655,620
665,393
684,787
669,543
684,787
Allowance for credit losses on loans
(8,696
)
(8,465
)
(8,721
)
(8,793
)
(8,818
)
(8,696
)
(8,818
)
Investment securities
120,629
123,318
128,214
126,795
124,109
120,629
124,109
Deposits
677,349
660,614
702,078
684,480
692,028
677,349
692,028
Borrowings
62,265
77,817
39,245
59,292
67,214
62,265
67,214
Stockholders' equity
80,647
81,414
81,789
80,492
79,309
80,647
79,309
Financial Ratios and Other Data:
Performance Ratios:
Net interest margin (3)
2.96
%
2.81
%
2.78
%
2.69
%
2.62
%
2.96
%
2.62
%
Net interest spread (4)
2.40
%
2.20
%
2.17
%
2.06
%
1.99
%
2.40
%
1.99
%
Noninterest income to average assets (5)
0.59
%
0.62
%
0.91
%
0.83
%
0.73
%
0.59
%
0.73
%
Noninterest expense to average assets
2.95
%
2.98
%
3.06
%
3.00
%
3.05
%
2.95
%
3.05
%
Efficiency ratio (6)
85.03
%
89.37
%
85.33
%
87.24
%
93.65
%
85.03
%
